A Multiperiod Theory of Corporate Financial Policy Under Taxation
- 1 March 1990
- journal article
- Published by JSTOR in Journal of Financial and Quantitative Analysis
- Vol. 25 (1) , 25
- https://doi.org/10.2307/2330886
Abstract
This paper examines multiperiod corporate financial policy in a world where the only market imperfection is taxation. The optimal financial policy determines the firm's capital structure and debt maturity structure. Two implications of this policy are: (1) there can be a set of debt-asset ratios that is consistent with firm value maximization, and (2) debt maturity structure is irrelevant to firm value.This publication has 0 references indexed in Scilit: